Governor Terry McAuliffe says that he will sign the state’s two-year budget, but he has vetoed a provision seeking to tie his hands on Medicaid expansion. McAuliffe says he is moving forward on that expansion on his own, he has options available, and he has directed officials submit a plan to his desk by September 1st.

House of Delegates Republican leaders say McAuliffe has no authority to expand Medicaid coverage on his own or without the specific approval of the General Assembly. They say it’s a clear case of executive overreach, and they are prepared to challenge it through all available avenues, including the court system.

As for the budget, McAuliffe says time is now too short, and too many local governments, school systems, state workers and citizens depend on state funding to risk a government shutdown that would occur without a new spending plan in place by July 1st.